Vermont Mortgage Guide 2026
Everything a Vermont buyer needs in one place: 2026 FHA limits for all 14 counties, the $832,750 conforming limit, VHFA loans and down payment help, how Vermont property taxes and the homestead declaration work, and a closing cost breakdown built on the state’s property transfer tax.
Vermont Loan Limits by County (2026)
Vermont’s conforming loan limit is $832,750 in all 14 counties. FHA sits at the national floor of $541,287 in 11 counties and is set higher at $575,000 in the three counties of the Burlington-South Burlington metro area.
| Area | Conforming Limit | FHA Limit | Notes |
|---|---|---|---|
| Chittenden, Franklin and Grand Isle counties (Burlington-South Burlington area) | $832,750 | $575,000 | Highest FHA limit in Vermont |
| Washington County (Barre area) | $832,750 | $541,287 | National FHA floor |
| Rutland County (Rutland area) | $832,750 | $541,287 | National FHA floor |
| All other 9 counties | $832,750 | $541,287 | National FHA floor |
FHA limits come from HUD and conforming limits come from FHFA — they are set by different agencies. Verify any county at the HUD FHA Mortgage Limits lookup. Figures above are CY2026, retrieved September 2026.
Comparing Vermont Loan Programs
Most Vermont buyers choose between five routes. The credit scores below are practical lender thresholds rather than published program minimums, except where a program sets its own.
| Program | Min Down | Min Credit | Best For |
|---|---|---|---|
| FHA | 3.5% | 580 | Buyers with thinner credit or limited savings |
| VA | 0% | 580–620 (lender overlay) | Veterans, active duty, and eligible spouses |
| USDA | 0% | 640 (lender overlay) | Eligible rural Vermont addresses within income limits |
| Conventional | 3%–20% | 620 | Stronger credit, or avoiding FHA’s upfront and annual premiums |
| VHFA | As low as 0%–5%, depending on the program | 640–680, depending on the program | Buyers within VHFA’s income and purchase price limits |
HUD allows maximum FHA financing at a credit score of 580 or above and limits borrowers between 500 and 579 to 90% loan-to-value (HUD). VA states that it does not require a minimum credit score (VA), and USDA says its guaranteed program has no credit score requirement (USDA Rural Development). VHFA’s minimum credit score for all borrowers is 640–680 depending on the program (VHFA).
Vermont Housing Finance Agency (VHFA)
The Vermont Housing Finance Agency is created by state law as a body politic and corporate. VHFA benefits are available exclusively through participating banks, credit unions and mortgage companies, and its programs are paired with eligible 30-year fixed rate Fannie Mae, Freddie Mac, FHA, Rural Development and VA mortgages.
| Program | Who It Is For | Key Terms |
|---|---|---|
| MOVE | Buyers within VHFA’s MOVE income and purchase price limits | Often VHFA’s lowest interest rate; first-time homebuyer requirements apply |
| MOVE MCC | Buyers within the MOVE limits | Mortgage Credit Certificate issued at closing; federal tax credit up to $2,000 a year |
| ADVANTAGE | First-time and repeat buyers | VHFA’s highest income and purchase price limits; no first-time requirement unless using VHFA down payment assistance |
| ASSIST | Buyers who have never owned a home, with MOVE | Up to $10,000; 0% deferred, repaid at sale, refinance or payoff |
| First Generation Homebuyer Grant | Eligible first-generation buyers | $15,000 grant for down payment and closing costs |
VHFA’s MOVE purchase price limit is $450,000 for one unit in every county, and ADVANTAGE allows up to $550,000 for one to two units, as of July 1, 2026. Check the VHFA income and purchase price limits before assuming you qualify.
Vermont Property Taxes
Dividing the state median annual real estate tax bill of $5,039 by the state median owner-occupied home value of $316,600 gives an estimated effective rate of 1.59%. Sources: Census ACS 2020–2024 5-year table B25103 and table B25077.
That 1.59% is an estimated effective rate derived from two separate medians. It is not the median of individual households’ effective rates, and no single Vermont household necessarily pays it. Your actual bill depends on your property’s assessed value and the local rates where it sits.
| Home Value | Est. Annual Tax | Monthly Escrow |
|---|---|---|
| $300,000 | $4,770 (Est.) | $398 |
| $350,000 | $5,565 (Est.) | $464 |
| $400,000 | $6,360 (Est.) | $530 |
| $500,000 | $7,950 (Est.) | $663 |
Vermont property owners whose homes meet the definition of a Vermont homestead must file a Homestead Declaration every year by the April filing deadline. Details are on the Vermont Department of Taxes homestead declaration page.
Treat the table above as a planning estimate built from the statewide 1.59% figure, and ask your lender for the actual parcel figure before you commit.
Vermont Closing Costs
State law sets the property transfer tax, the clean water surcharge and the town clerk’s recording fee. Everything else on the closing statement — lender, appraisal, title and settlement charges — is set by the provider.
| Fee | Amount | Set By |
|---|---|---|
| Property transfer tax, principal residence | 0.5% of the first $200,000 and 1.25% above | 32 V.S.A. § 9602 |
| Property transfer tax, VHFA or USDA Rural Development mortgage | None on the first $250,000; 1.25% above | 32 V.S.A. § 9602 |
| Clean water surcharge | 0.22%, except on the first $200,000 of a principal residence or the first $250,000 with a VHFA or Rural Development mortgage | 32 V.S.A. § 9602a |
| Recording | $15 per page | Town clerk (32 V.S.A. § 1671) |
| Lender, appraisal, title and settlement fees | Set by the provider | Compare Loan Estimates |
Sources: 32 V.S.A. § 9602, 32 V.S.A. § 9602a and 32 V.S.A. § 1671.
Vermont Housing Markets
Where you buy in Vermont changes your FHA limit, your VHFA limits and your USDA income limit. The table below is a qualitative orientation, not a price guide.
| Area | Market Notes |
|---|---|
| Burlington area (Chittenden, Franklin and Grand Isle counties) | FHA limit $575,000 and USDA’s highest Vermont limit at $149,300 for 1–4 people. VHFA MOVE income limit $120,000 for 1–2 people. |
| Addison County | FHA at the national floor; USDA limit $133,550. VHFA MOVE income limit $110,000 for 1–2 people. |
| Washington County (Barre area) | FHA at the national floor; USDA limit $131,100. VHFA MOVE income limit $125,000 for 1–2 people. |
| Bennington and Windsor counties | FHA at the national floor; USDA limits of $125,200 and $126,150. VHFA MOVE income limit $110,000 for 1–2 people. |
| Rest of Vermont | FHA at $541,287 and USDA at the $124,350 base limit for 1–4 people. |
